Rupee recovers 9 paise against dollar in early trade

Rupee pared a few of its early gains but was still trading up by 4 paise at 65.14 against the United States currency in late morning deals on bouts of dollar selling by banks and exporters.

The rupee resumed lower at 64.88 a dollar against Monday’s level of 64.75 at the interbank foreign exchange market. The index, which tracks dollar movement against a basket of six major world currencies, stood at 94.66, down 0.1 per cent. A global survey by foreign brokerage Bank of America Merill Lynch (Bofa-ML), though, said market participants are still anticipating a USA rate hike in December. The yield on local sovereign bonds due May 2025 fell two basis points to 7.56 per cent, according to prices from the Reserve Bank of India (RBI)’s trading system.

Dealers said importer dollar demand has reduced following government measures to discourage vehicle imports.

The Indian currency fluctuated in a range between 65.05 and 65.14 against US Dollar during intra day.